GOLD: UPDATE: 25 AUGUST 2011

GOLD: MAJORHURDLE IS AT $1754 BELOW THIS LEVEL-REMAIN AND SUSTAIN, THEN PANIC SELLING ISNOT RULE OUT. IF GOLD BREAK $1754 AND SUSTAIN BELOW, THEN PANIC SELL UP TO$1721 TO $1688.ABOVE $1754 FIRST TARGET$1780,$1795,$1819.

2nd Resistance Point               1,884.4

1st Resistance Point                 1,819.2

Last Price                                1,754.1

1st Support Level                     1,721.0

2nd Support Level                    1,688.0

Positive reasons for gold to go up:

·       Cyprus Faces BAILOUT OR BUST After Rejecting Emergency FiscalPackage

(Readmore: http://www.businessinsider.com/in-cyprus-it-could-be-bailout-or-bust-2011-8#ixzz1Vzuf0jUD)

·       SPIN - Durable goods report Non-Defence capitalgoods spending ex aircraft fell 1.5% month/month + consumer still slowing

(Read more: http://blogs.wsj.com/economics/2011/08/24/vital-signs-durable-goods-orders/)

·       Kazakh Central Bank Gets ‘Priority Right’ to Buy Gold

(Read more:http://www.bloomberg.com/news/2011-08-23/kazakhstan-gives-central-bank-priority-right-to-buy-gold-1-.html)

Negative reasons for gold to fall:

·       stability coming into the European and US markets

·        QE 3 leads to tanking of DollarIndex so gold and others move up but risk appetite for stocks may be improve negativefor gold.